FRANCE LAW AND PRACTICE Contributed by: Caroline Silberztein, Benoît Granel, Jean-Baptiste Tristram, Lionel Ochs and Laura Nguyên-Lapierre, Baker McKenzie
If any of these procedural steps has been requested, the collection of the adjusted amount of tax is postponed until these avenues of recourse have been exhausted. Once the tax collection notices have been received by the taxpayers, following the reas - sessment procedure, taxpayers are entitled to file a contentious claim with the FTA to once again request the withdrawal of the reassess - ment. Such a claim is mandatory before appeal - ing against an assessment before a court (Article R 190-1 of the FBTP). The time period within which the taxpayer can file a claim would gener - ally expire on 31 December of the second year following the year of the receipt of the tax collec - tion notice or the payment of the tax. The FTA will review the claim and have the right to change the stated legal basis for the reas - sessment, as well as reduce or cancel the reas - sessment. If the FTA responds to such a claim, or if there is no response from the FTA after six months, the case can be taken to court. Payment of Tax Before Going to Court In principle, once tax collection notices have been issued, the taxpayer has to pay the tax due before lodging a claim before the FTA (adminis - trative phase). Then, a refund may be granted to the taxpayer if a court invalidates the reas - sessments. Having challenged the proposed tax assess - ments, and during the pre-litigation phase of the procedure, the taxpayer may claim the benefit of the deferral of payment of the tax due until a decision is granted by the court, provided suf - ficient financial guarantees are given (Article L 277 of the FBTP).
The FTA therefore sends the taxpayer a request to enter into or provide guarantees supporting the deferral of payment that was claimed. The provision of guarantees is required for any pay - ment deferral. The FTA is required to examine all the proposed guarantees. If the taxpayer obtains the payment deferral, and if the lower tax court rejects its claim, the tax - payer will have to pay the reassessed tax, late- payment fees and penalties, as well as additional late-payment interest. Conversely, the taxpayer will be entitled to a refund of the guarantee fees. If the taxpayer decides to pay immediately after receiving the tax collection notice, and if the lower tax court upholds the right to its claims, it will be entitled to a refund of the sums paid, plus late-payment interest. Competent Courts TP cases are heard by the geographically com - petent lower administrative tribunal ( tribunal administratif ), the geographically competent Administrative Court of Appeal ( Cour Adminis- trative d’Appel CAA) and the French Supreme Administrative Court ( Conseil d’Etat CE). Appeal Process If the FTA responds to a contentious claim, the taxpayer normally has two months to take the case to the lower administrative tribunal. If there is no response from the FTA after six months, the case can be taken to the lower administrative tribunal at any time with no time limit. Written pleadings before the lower administra - tive tribunal are exchanged between the taxpay - er and the FTA until the case is deemed ready to be decided upon by the tribunal. The procedure before the tribunal generally takes one to two years. A decision of the tribunal can be appealed before the administrative courts of appeal and
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